Universal Credit and Working Tax Credits

Drew Hendry Excerpts

Wednesday 15th September 2021 Commons Chamber

[David Linden (Glasgow East) (SNP)]

I want to begin by describing the importance of this debate:

“There are plenty of times where I’m getting such bad hunger pains that I can barely move.

I can last for a while without eating. I’ve been trying to put my mind off the hunger by either doing exercise, or maybe doing a bit of work on my computer.”

That is a quote from Morgan. He is 23 and has spent six months sleeping on friends’ sofas and occasionally on the street. He is currently suffering from severe depression that impacts on his ability to work. As a universal credit claimant, Morgan has stated that the proposal to cut the £20 uplift is

“literally like taking food off my table.”

That is the reality of life in Tory Britain—the reality of a decade of austerity measures and cuts to social security. Morgan is just one of 5,917,053 people, because that is the number of people who are relying on the £20 uplift to universal credit. Throughout this debate, when we inevitably get drawn into the hurly-burly of parliamentary politics, I want us all to keep in mind Morgan and the nearly 6 million people we are talking about, because it is their livelihoods that are on the line and their financial security that is at risk.

We are not talking in hypotheticals. The Joseph Rowntree Foundation’s report lays it bare: cutting the universal credit uplift will plunge 500,000 people into poverty overnight. We all know the impact that the universal credit uplift has had on claimants. The additional £20 per week has been monumental in helping families get by. Audrey Flannagan, who runs the Glasgow SE food bank in my home city, recently told the media:

“If you look at the impact it”—

the universal credit uplift—

“has had on the food bank, last year in the first three months from January to March we saw 601 single people pre the £20 uplift. January to March this year, we saw 151 single people. That’s a massive difference, not all because of the £20 uplift, but a lot will be because of the £20 uplift.”

The uplift to universal credit was desperately needed before the pandemic, and its impact can be seen right across the voluntary sector.

The British Government now have the opportunity to address the failures of universal credit and truly help those who are most vulnerable as we seek to recover from the pandemic. The first step should be to make the £20 uplift to universal credit permanent; indeed, it should also have been extended to those on legacy benefits, who have been so cruelly overlooked and left behind by this Government.

I have heard Ministers defending removing the uplift by repeating the line that it is best for people to get back into work rather than rely on benefits. In fact, the Chancellor himself has said that

“going forward, my view and the government’s point of view is the best way to help people is to help them into work and make sure those jobs are well paid”.

That only goes to show just how little Tory Ministers know about the benefit that they pontificate on. For their benefit, I will explain.

Universal credit supports both those unemployed and those employed on a low income. More than a third of people claiming universal credit are in employment. Of the nearly 6 million people on universal credit, 2.3 million are actually employed. On top of that, a great number of those employed claiming universal credit are parents. The latest figures show that roughly 1.9 million families with children will see their benefits cut at the end of this month.

The Child Poverty Action Group has stated that the number of poor children in working families is on the rise. Even before the pandemic, there were 4.3 million children growing up in poverty in the UK. That is nine children in a classroom of 30—a shocking indictment of Tory Britain. The proposed cut to universal credit will put a further 200,000 children into poverty, including those in working families. It is simply unthinkable.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

My hon. Friend makes a powerful point about the impact on families of low-paid workers. We heard this morning that inflation has now gone up to 3.2%. Workers in my constituency now face an increase in national insurance and higher food costs. They are already facing higher heating costs, and let us not forget that many people in rural constituencies are off the grid for electricity and gas, so it is more expensive for them anyway. This cut to universal credit, according to the Government’s own advice, will cause a catastrophe. Does he agree that, for families in constituencies such as mine, the catastrophe will be even bigger?

[David Linden]

My hon. Friend’s constituency was one of the earliest areas where universal credit was rolled out, so he is familiar with it, and as a highland MP he is acutely aware of the much higher energy bills. The universal credit cut will probably mean a choice between heating and eating this winter for people in his Inverness constituency. He is right to put that on the record, and I hope that Members who represent constituencies in other parts of rural Scotland will bear that in mind, particularly on the Conservative Benches. It is simply unthinkable that the UK Government are even considering this policy. All MPs must consider whether they want it on their conscience when the Division bell rings tonight.

Whether or not someone claiming universal credit is in employment, the £20 uplift is vital to their income. To quote Morgan again:

“We should not have had to have gone through a pandemic just to get that increase”.

Morgan is right. The most vulnerable people in our society had been suffering for decades, long before the pandemic hit these shores. Years of austerity have deepened the inequality and poverty in our society, and the pandemic has only magnified those pre-existing inequalities. Years of austerity have deepened the inequality and poverty in our society, and the pandemic has only magnified those pre-existing inequalities in our welfare system.

A decade of Tory rule has left workers, on average, £l,000 a year worse off. Analysis by the Office for National Statistics shows that, when inflation is taken into account, the average wage is worth less in 2021 than it was in 2010. Despite the continual Tory mantra that getting people into work is the best route out of poverty, wages continue to fall, and austerity continues to deepen inequalities. The pandemic has only served to bookend the decades of cruel welfare cuts and truly highlight how inadequate support has been.

Universal Credit: Delayed Roll-Out

Drew Hendry Excerpts

Tuesday 4th February 2020 Commons Chamber

[Will Quince]

I can absolutely give my hon. Friend that assurance. Under universal credit, it will always pay to work and it will always pay to do more hours. That is the principle that we stand by, and we will stick by it.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

My constituency was the guinea pig for universal credit, and we had no protection over our transition. By 2024, Inverness will have endured 10 years of chaos, delays and hardship. What will the Minister do to compensate those claimants who have already been through this mill, and will he do something about repaying the £3 million in additional administration costs that Highland Council has incurred in order to operate universal credit?

[Will Quince]

First, I do not recognise the statistics and figures that the hon. Gentleman raises. I feel that he has a permanent prejudice against universal credit in principle. If he would like to write to me with any statistics or figures that support his claims, I would be happy to look at them.

Oral Answers to Questions

Drew Hendry Excerpts

Monday 7th October 2019 Commons Chamber

[Mr Speaker]

Given that the hon. Gentleman chairs the all-party parliamentary group for terminal illness, I call Drew Hendry.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Thank you, Mr Speaker.

This Government are stringing terminally ill people and their families along. They already have the evidence from stakeholders and from what is happening in Scotland. When will they do what they should for these people and their families and scrap the six-month rule, get implicit consent in place, and make the situation one of fairness and dignity for people who are dying?

[Justin Tomlinson]

I pay tribute to the hon. Gentleman for his work as chairman of the APPG. We do take things seriously, which is why we are doing this thorough evaluation. We are already working with organisations such as Marie Curie, the MND Association, the Royal College of Nursing, the British Medical Association, Hospice UK, the Association for Palliative Medicine, Macmillan, the Queen’s Nursing Institute and Sue Ryder. We must get the balance right so that those who should be getting fast-track access to support are always prioritised, and we will be doing a thorough evaluation to ensure that we get that right.

Universal Credit Fraud

Drew Hendry Excerpts

Wednesday 10th July 2019 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

In responding to the urgent question from my hon. Friend the Member for Airdrie and Shotts (Neil Gray) on this shocking and disgraceful criminal activity, the Minister said that he would do everything he could to “protect vulnerable people in society”. If that is the case, he will be aware that the all-party parliamentary group for terminal illness published its report last week on his Government’s six-month rule, which is causing harm and heartbreak for the dying and their families. Has he read the report’s damning evidence? If so, how can he justify his Government’s continuing with this policy?

[Justin Tomlinson]

I pay tribute to the work of the APPG and in particular the hon. Member for Bridgend (Mrs Moon), who has campaigned tirelessly with organisations such as the Motor Neurone Disease Association, Marie Curie, Parkinson’s UK and a number of others. As the Minister for Disabled People, I have had a number of meetings on this matter, particularly on the process as somebody claims through the special rules. We are aware of it, and the Secretary of State is personally passionate that we should do everything we can. This is an area in which we will be making significant improvements in the very near future.

Oral Answers to Questions

Drew Hendry Excerpts

Monday 1st July 2019 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

1. What progress her Department has made on rolling out universal credit.

[The Secretary of State for Work and Pensions (Amber Rudd)]

The national roll-out of universal credit was completed in December 2018. As of May 2019, there are now more than 2 million people claiming universal credit, and of those, 34% are in work. We now plan to begin “the move to UC” pilot later this month.

[Drew Hendry]

The right hon. Lady’s Government promised that

“universal credit should not leave councils out of pocket.”

Yet Highland Council has nearly £3 million of additional costs, including £640,000 of indisputable administration costs, directly as a result of universal credit. Despite letters, questions and meetings with officials and Ministers, where details and data have all been provided, there is still no settlement. When will this debt to highland households finally be repaid?

[Amber Rudd]

I am aware that the hon. Gentleman has raised this matter before and has had a number of meetings with the Minister for Employment. As a result of some of those meetings, we have already increased the additional funds available to councils such as the one to which he refers. There has been an increase in the total amount of new burdens money that has been paid out, but we have also said that we will investigate further. I want to reassure him that this is not finished yet, and that I will continue to look at it myself to ensure that there is satisfaction.

--- Later in debate ---

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

T2. I have the honour of chairing the all-party parliamentary group for terminal illness, and we have been taking evidence over recent months on the challenges that dying people face in accessing social security due to the six-month rule. Incidentally, the Scottish Government are already committed to allowing clinicians to make judgments for PIP, with their limited powers. We will be launching the report on Wednesday at 4 o’clock in the Members’ Dining Room, so will the Minister attend and agree to meet me and Marie Curie to discuss the report’s findings?

[Amber Rudd]

I thank the hon. Gentleman for his work in this area, and I reassure him that there have been several meetings with Marie Curie on this subject. I will take an interest in the report that is coming out on Wednesday, and I can tell him that we are once more looking at this matter again.

Universal Credit and Debt

Drew Hendry Excerpts

Wednesday 5th June 2019 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Sir Henry. I congratulate the hon. Member for High Peak (Ruth George) on securing this debate.

In Inverness and the highlands, we have had universal credit for six years. Thanks to the Tory-Lib Dem coalition, we were already suffering from austerity. There was one food bank in Inverness. With the addition of universal credit, problems rocketed. We now have a food bank in every quarter of the city and beyond. My constituents face choosing between buying clothes for their children, switching on the heating and putting food on the table.

Other hon. Members will recommend changes, but given the extremely limited time that I have, I will focus on the debt accumulated for every single household in Highland, and give a warning to hon. Members who are dealing with universal credit in their constituency case-loads. Highland Council has incurred debts, directly attributed to universal credit, of £2.5 million. Of those debts, £600,000 is directly due to administrative costs resulting from universal credit. The details of those costs have been provided to the Minister and the UK Government. They have said in written answers to questions that no council should bear an additional burden or debt as a result of universal credit, yet it is a fact that this debt is out there.

It is incumbent on the Minister and his Government to sort this out now for the people of the highlands, to repay the money that those people are due, and to ensure that councils across the rest of Scotland, and the other nations of the UK, are not similarly burdened. This shambolic roll-out of universal credit continues to cause harm in people’s homes and to their health, and to harm those who are not directly involved in universal credit.

Oral Answers to Questions

Drew Hendry Excerpts

Monday 18th March 2019 Commons Chamber

[Brendan O’Hara (Argyll and Bute) (SNP)]

8. What recent assessment she has made of the effect of her Department’s policies on levels of poverty.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

19. What recent assessment she has made of the effect of her Department’s policies on levels of poverty.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

Household incomes have never been higher. In 2016-17, there were 1 million fewer people living in absolute poverty than in 2010. In Scotland, whichever way we look at poverty—relative or absolute, and before or after housing costs—in the three years to 2016-17, no measures are higher than in the three years to 2009-10; in fact, three are lower.

[Justin Tomlinson]

I am sorry to hear about the circumstances of that case, and I am happy to look into it further. One of the recent announcements we have made is that there will be Citizens Advice support within every jobcentre from April onwards. That is the sort of case where Citizens Advice can step in and provide independent support and advice, to ensure that people get their full entitlement.

[Drew Hendry]

Be it universal credit, the benefit freeze or Brexit, the poor are being hit the hardest at the moment, yet according to research from the Resolution Foundation, overall tax and benefit changes will take £100 from families in the bottom fifth of income distribution and give £280 to those in the top 10. Does the Minister think that that is fair?

[Justin Tomlinson]

That is not something I recognise. Through the additional money being put into universal credit, record employment, the changes to the income tax personal threshold and rising wages, the poorest fifth in society are now £400 better off in real terms than in 2010.

--- Later in debate ---

[Amber Rudd]

As the right hon. Gentleman knows, we are introducing measures to help people gain early access to money so that that eventuality does not occur. They can receive benefit advances of up to 100%, which 60% now access, and can access the housing benefits run-on, which is additional money, and, from next year, other legacy benefits, which are also additional money and which will be paid within that two-week period.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

T6. Council tax payers in the highlands are continuing to bear the burden of additional administration expenses amounting to many hundreds of thousands of pounds as a result of universal credit. The Minister met me in January, and his officials have subsequently met council officers. The situation is clearly unfair. When will it be sorted out, and the money reimbursed?

[Alok Sharma]

I thought that we had a constructive discussion. As the hon. Gentleman says, my officials have also talked to the council, but I am always happy to have another discussion. I should add that the total amount of new burdens funding is increasing from £14 million to £18 million in 2019-20.

Employment and Support Allowance: Underpayments

Drew Hendry Excerpts

Monday 25th February 2019 Commons Chamber

[Sarah Newton]

On the question about accountability, of course the National Audit Office has undertaken an inquiry into this issue and so has the Public Accounts Committee. There has been a lot of scrutiny, and it is quite right that there has been so much. I do not hold back from saying that this should never have happened. It is a very serious situation that we do take very seriously and are working hard to rectify. Please be assured that that is the case, that we have made the resources available, and that we will complete this exercise this year.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

One of the many people in my constituency who have suffered from a catalogue of errors by the DWP is supported by Cantraybridge College. He had no ESA payment from the start of November until I intervened earlier this month. He was told there was a fault on the claim but given no other details. What does the Minister say to people such as my constituent and others who have had to rely on the support of friends and family to get through desperate times while those errors have gone on?

[Sarah Newton]

I thank the hon. Gentleman for his question, but it does not sound as though that particular case relates to what we are discussing today. Clearly anyone who needs support should receive that support. The person the hon. Gentleman describes will now be claiming universal credit, and the huge benefit of universal credit is that that young man will have a relationship with his work coach, and they can work together to make sure he is getting all the support that he needs.

Universal Credit

Drew Hendry Excerpts

Monday 14th January 2019 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

rose—

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

rose—

[Mr Speaker]

Ooh, what a taxing choice! I call Mr Alan Brown.

--- Later in debate ---

[Alok Sharma]

Let me be absolutely clear: when we get something wrong in the Department, we apologise, and I write to apologise to individuals and colleagues. Where there are specific cases to raise, I am happy to meet the hon. Gentleman and his colleague.

[Drew Hendry]

You are saving the best for last, Mr Speaker.

For nearly six years, from pilot through to full service roll-out, my constituents in Inverness and then in the rest of my constituency have been suffering and reporting the flaws of universal credit to the Government. Now that the mistakes have been admitted to and the flaws have been acknowledged, what will the Minister do to compensate the people who have endured that suffering?

[Alok Sharma]

Overall, the universal credit policy is absolutely working. It is getting more people into work, which is ultimately what the welfare system is also about. As the hon. Gentleman knows, if he has individual cases, I am happy to take those up with him and to discuss them.

Universal Credit: Managed Migration

Drew Hendry Excerpts

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

I am very happy to talk to the hon. Gentleman about this. I assume that he refers to the run-on of the DWP legacy benefits from 2020, and of course this will apply to claimants on managed migration and to those who naturally migrate, provided that they do not have a break in their claim.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Since as far back as 2013, Inverness and then the rest of my constituency suffered through the pilot and on through the full-service roll-out of universal credit. The new year front page of The Inverness Courier newspaper described the rise of poverty in our community, and that was directly attributed to universal credit. Over nearly six years, the UK Government have failed to listen to any of the agencies, the charities, the council or the people who have been affected. What does the Minister say to those people who have suffered directly over all that time from having their plight ignored by this Government?

[Alok Sharma]

I have a lot of respect for the hon. Gentleman, and I am sorry that we are ending this urgent question on a discordant note, but respectfully, I do not agree that we have not listened. That is precisely what we have been doing, and we will continue to do so through the test phase and beyond.